After more than five years at the head of the International Air Transport Association (IATA), industry veteran Willie Walsh is leaving to become CEO of IndiGo.
Saadia Zahidi steps into his shoes as the ninth Director General of aviation’s leading organisation. Unlike Walsh, who held years of industry experience as CEO of Aer Lingus and IAG, Zahidi has worked at the World Economic Forum (WEC) for more than two decades. She is also the first woman to hold the role in IATA’s 70-year history.
Her appointment recognises that IATA does not necessarily need to be headed by someone with extensive operational experience. While safety remains one of the organisation’s top priorities, IATA also manage the economics of aviation and acts as a voice for the industry on the global stage. The Director General must navigate geopolitical tensions, changing regulations, and pressure from politicians and lobbyists, challenges that align well with Zahidi’s work at the WEC.
With this in mind, we look at the challenges at will be at the top of her in-tray when she assumes office on 1 November.
The Middle East crisis and its impact
The conflict between the US, Israel, and Iran continues to drag on, frustrating shipments through the Strait of Hormuz. While fuel prices have stabilised somewhat since war broke out in March, the situation places ever-greater cost pressures on airlines’ thin margins.
By November, it may be that fuel supply will be restored to normal levels. However, even in the medium term prices will remain high. The industry is already feeling the impact: Ryanair’s Q1 profits dropped significantly from the same period in 2025 due to paying more for fuel, while Singapore Airlines reported a quarterly loss for the first time since 2022.
The Director General of IATA will also need to support airlines in the Gulf, which were severely affected by the airspace closures that grounded almost all traffic through the region at the outbreak of hostilities in March. Emirates say traffic is now up to 90% of pre-war levels, but IATA’s own reporting shows revenue passenger kilometres (RPK) in the Middle East were still down by 13.9% year-on-year in June.
Taxes and regulation
Rising fuel costs have compounded issues aviation was already facing regarding tax pressures. Low-cost carriers in the US argued unsuccessfully for tax breaks earlier this year in an effort to protect their margins in this difficult operating period. Meanwhile, the EU’s carbon pricing and SAF schemes have been opposed by airlines, who think governments are forcing them to shoulder the burden of the green transition.
Zahidi will have to argue for aviation’s best interests, representing the attitudes of airlines while taking into account broader economic necessities.
Central Asia
IATA announced in April that they were opening a permanent office in Tashkent, Uzbekistan, as the Central Asian aviation industry takes off.
Strategically located between Russia, Asia, and Europe, the region’s potential as an air travel bridge was only highlighted further by this year’s disruption in the Middle East. Meanwhile, economic progress is stimulating outbound demand as well as inbound tourism.
Uzbekistan is one of several countries investing heavily in airport development. IATA’s presence in the region will be essential to fostering sustainable infrastructure and conducting audits. Central Asia has historically fallen behind on key safety metrics, but is quickly catching up through close collaboration with IATA, ICAO, and other industry bodies.
Zahidi will need to keep advocating for the region so that its citizens can reap the lifestyle and economic benefits of a modern aviation network.
Crew and workforce
Just this week Canadian carrier WestJet was destabilised by strike action, while airlines in Europe including Lufthansa are engaged in long-running disputes with staff. Air traffic unions in countries such as France also continue to argue for better pay and working hours amid workforce shortages.
Addressing these shortages in air traffic control, engineering and maintenance, is essential to ensure aircraft are flying safely. Aviation is keen to deploy more technology for MRO, customer service, and scheduling to plug these gaps. But finding people to fill these critical roles is difficult when aviation is competing with powerful, high-paying industries for talent.
These problems require support from IATA to ensure the human intelligence is there to support aviation growth while promoting aviation as a desirable career.
Sustainability
Dramatic wildfires this summer have emphasised the necessity of sustainability drives to limit the impact of climate change. Aviation’s record in this area is patchy: many airlines are banking on sustainable aviation fuel (SAF) to dramatically reduce emissions. Yet IATA’s own research warns that supply is still falling well short of the industry’s 2050 net-zero target.
IATA keeps arguing for a global supply chain that provides sustainable fuel at accessible prices. As already mentioned, airlines in the EU feel that they are being forced to pay too much to make this a reality. But the ongoing fuel crisis could provide useful stimulus: reducing reliance on crude sources not only limits emissions but ensures the industry is not as impacted by the cost crisis we’re seeing now.
In the meantime, Zahidi will need to get to grips with IATA’s sustainability programmes, including considering whether measures to reduce fuel burn should become industry standards. AI is making great strides in this area, helping choose flight routes that avoid turbulence and other optimisations.
Join us at World Aviation 2026 to hear how airlines are navigating these 5 key areas.
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